Lotte Innovate (286940.KS) is teaming up with Qatar-based Protocol Capital Group (PCG) to pursue multi-lane free flow (MLFF) tolling projects overseas.
The company said on the 23rd that it had signed a strategic partnership agreement with PCG to cooperate on MLFF business abroad. Under the agreement, the two companies will consult each other first when adopting or applying related technologies and when pursuing new projects, turning those discussions into concrete opportunities. On that basis, they plan to build a close working relationship spanning initial project reviews, technology deployment, business development and commercialization.
PCG, headquartered in Doha, specializes in financing, investment attraction and business development. It works with global technology partners in fields including smart cities and smart transportation.
Lotte Innovate said the agreement will speed up its entry into Malaysia's MLFF market. Malaysia is upgrading its toll collection system across about 211 toll plazas on 34 expressways covering 2,035 kilometers. MLFF allows drivers to pay tolls without stopping at a booth or moving into a designated lane. Building such a system requires capabilities in vehicle recognition, traffic data processing, fare settlement and operations management. The company said it will draw on the technology and system integration experience it has accumulated in domestic transportation infrastructure projects to meet varied demand in overseas markets.
Lotte Innovate also plans to identify MLFF opportunities in overseas markets with PCG and flesh out cooperation models. PCG operates in Southeast Asia, including Malaysia, as well as in Latin America, the Commonwealth of Independent States (CIS) in Central Asia and North Africa. The push is part of Lotte Innovate's plan to triple revenue from its mobility business by 2030.
"This agreement will be an important opportunity to extend the technology and project execution capabilities we have built in Korea's transportation infrastructure sector into the global market," an official at Lotte Innovate said. "Based on a close cooperation framework between the two companies, we will turn business opportunities in key overseas markets, including Malaysia, into concrete deals and connect them to real revenue growth, strengthening the competitiveness of our global mobility business."